Mr. Parth Nyati, Founder, Tradingo
The bullish momentum is continued where Nifty and Sensex end with gain for the fourth consecutive day. It was risk-on sentiment across the globe therefore high beta energy, realty, and auto stocks outperformed while defensive IT and Pharma names underperformed. IT stocks traded cautiously ahead of Q3 numbers for big IT names because stocks have already rallied in anticipation of strong numbers and there is no scope for any disappointment however Infosys managed to outperform. Telecom is another sector that is showing buying attraction amid a strong outlook for the industry. Reliance contributed the highest gain to the Nifty as it had a tailwind for both the energy and telecom sectors.
Technically, Nifty manages to close above resistance of 18200 that has opened the door for a fresh all-time high however 18342 could be an intermediate hurdle. On the downside, 18000-17950 will act as an immediate and strong demand zone while 17800/17640 are the next support levels.
If we look at the OI distribution for the Nifty then put writers are looking confident however there is still a tussle between bull and bear at 18200 level. On the downside, the highest OI is placed at 17700PE while 18100-18000 may act immediate support area.
Banknifty is trading above the 38500 level which is a positive sign however 39100 is an immediate hurdle; above this, we can expect a move towards the 40000 level. On the downside, 38000 will act as immediate support while 37500 is the next support level.
We have weekly F&O expiry today and if Nifty manages to sustain above 18200 level then expiry may settle between 18300-18350 zone while if it slips below 18100 level then Nifty may head towards 18000 therefore 18100-18200 is a well-defined zone.
38500 will be an important level for the Banknifty and if manages to hold this level then it may head towards the 39000-39100 zone otherwise it may see a pullback towards the 38000 level.